What is a contingent beneficiary?

A contingent (or secondary) beneficiary receives the death benefit only if all primary beneficiaries have died before you or are otherwise unable to collect the payout. For example, you might name your spouse as primary beneficiary and your children as contingent beneficiaries. Without a contingent beneficiary, the death benefit would pass to your estate if your primary beneficiary predeceases you, which can trigger probate and delays.